First, find experienced professional advisers. Arranging the deal yourself to avoid fees is almost certainly a false economy. An experienced agent, a solicitor and importantly, an accountant, are all essential before any sale negotiations are begun. Developers will have strict criteria for the land they wish to purchase in order to maximise their own profits, so obtaining the correct advice at the start will help ensure you can offer land for sale in the most appealing way to the developer and lucrative way for yourself.
We hope this helps provide valuable insight for landowners about the pros, cons and items to evaluate when considering subdividing your land. Check back soon for our second article in this series about Subdividing Land: Tips for Landowners from a Developer, where we will describe some real world issues that we have seen in subdivision attempts. Plus, the third article in the series will provide hands-on details about the steps to take if you decide to subdivide your land into lots.
Buyers of undeveloped land will have fewer and less attractive financing options through banks than other real estate buyers will. Banks ask for large down payments on undeveloped land and don't offer interest rates as low as those available for new homes. As a result, finding a buyer for your land will be more difficult. If you can afford to offer your own financing, you will open the door to a larger pool of prospective buyers. Hire a lawyer or real estate agent with experience in seller-financed deals to lay out the terms for this type of sale.
Your buyer profile can depend on what type of property you are selling, whether the land has been developed already, its location and market conditions, among other criteria. Is your likely buyer an individual looking for a lot for a new home? Or is your buyer going to be a builder or developer looking for land for their next project? Or is your buyer some combination of those, or someone different altogether? There may be different buyers for finished lots, rural acreage or a parcel of suburban land in a thriving new home market.